The last dozen years have seen some of the most dramatic changes in real earnings. After falling with the recession of 2000 after the tech boom, earnings shot up with bank earnings leading the way. The environment of low interest rates at the end of the Greenspan era was a perfect time for global companies to improve their balance sheets and make money. This came to an abrupt end with the Great recession. However, the earnings quickly improved much faster than employment as companies were able to increase productivity and control costs. While not at the peak from before the financial crisis, global earnings are still at very strong levels. This strength has been the driver for equity markets.
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